Sunday , June 24, 2018

Northern Mindanao GRDP posts 7.6% growth

THE Northern Mindanao’s economy registered a robust growth in 2016 by ending the year with a Gross Regional Domestic Product worth P305 million, a 7.6 percent growth, the highest recorded growth in the last six years, the Philippine Statistics Authority (PSA)-Northern Mindanao said.

The growth rate which improved by 1.9 percentage points compared to its recorded growth of 5.7 percent in 2015 is driven by the positive performance in industry and services sector.

The industry sector which includes mining, manufacturing and construction posted the biggest acceleration by 5.5 percent from its recorded growth in 2015 at 10.3 percent, while services, also accelerated by 0.8 percent from its recorded growth of 7.5 percent in the previous year.

The agriculture, hunting, forestry, and fishing meanwhile grew at a slower rate, that is, from 3.9 percent in 2015 to 2.4 percent in 2016.

The fast expansion of the services sector is attributed to the increase of the retail trade in the region.

Also, financial intermediation increased by 10.7 percent, and Public Administration and Defense by 4.8 percent, these growths are higher than the previous year's growths of 6.9 percent and 2.7 percent, respectively.

The transport, storage, and communication (TSC) also grew however at a slower pace, with 6.8 percent growth rate, compared with the 8.7 percent rate in the previous year.

The slow pace of the TSC sector is attributed to the slow services in transportation.

The real estate, renting and business activities performance in the region is recorded to be at 5.0 percent, lower than the 5.5 percent in the previous year.

Other services expanded by 8.9 percent, slower than the recorded growth of 11.7 percent in the previous year, which is attributed to the slow pace of growth in the health services.

Industry also expanded at a faster rate of 10.3 percent compared with the 4.8 percent growth in the previous year, while manufacturing, which accounted the biggest chunk of the total output in the industry sector, grew faster by 5.8 percent compared with the 3.2 percent growth in 2015.

The improvement, the PSA said, is attributed to the increase in food and beverage industries.

Meanwhile, the construction sector showed an upsurge of 29.6 percent compared with the recorded growth of 13.1 percent in the previous year, fueled by both the public and private construction.

Mining and quarrying also expanded to 16.0 percent.

Eddie Nasol, PSA-Northern Mindanao director said the economy growth of the region is higher than the national growth at 6.9 percent.

Nasol said Northern Mindanao maintains as the 7th biggest regional economy sharing 3.8 percent of the total GDP.

The region is also the second largest economy in Mindanao, accounted for 26.2 percent of the total output in Mindanao, he said.

Of the six regions in Mindanao, the region contributed 1.98 percent to Mindanao's economic growth, making it the second biggest contributor to the island's economic growth following Davao region with a contribution of 2.61 percentage points. (Althea Rana, Liceo de Cagayan University intern)